Crypto News
Bitcoin crashed below $70,000 this morning, falling 7% over 24 hours to $68,400, and dragged the whole market down with it. Ethereum dropped 6% to $1,920, BNB lost 6.3%, and XRP slipped 3.5%. Liquidations hit $1.64 billion in 24 hours, $1.46 billion of that from long positions, wiping out more than 175,000 traders. The selloff comes as stablecoin supply, crypto's on-chain dollar liquidity, shrank by $14.2 billion over 30 days, per Glassnode data.
Why it matters
That stablecoin drain is the sharpest since the 2022 bear market, when the Terra collapse triggered widespread capital withdrawals. Total stablecoin supply has fallen below $280 billion, levels last seen around September 2025. CryptoQuant recorded a $6.6 billion decline in USDT market cap over 60 days through November 7, more than double the contraction that followed the FTX collapse in December 2022.
Stablecoins function as the market's cash reserves. When investors redeem USDT or USDC for dollars, that purchasing power leaves the ecosystem entirely, leaving fewer buyers to absorb selling pressure. Glassnode itself warned that shrinking supply leaves less fuel available for another rally.
Market impact
Institutional flows are compounding the squeeze. US spot Bitcoin ETFs lost $1.6 billion across 20 trading sessions, with $47.7 million in net outflows on November 12 extending the withdrawal streak to six consecutive sessions. Bitwise's BITB led with $26.4 million out, while Ethereum ETFs saw at least $8 million in outflows.
Macro conditions add to the pressure. Stronger US inflation figures have made a December Fed rate hike almost certain, while a stronger dollar and rising Treasury yields weigh on speculative assets. Nvidia's leadership crisis has unsettled tech markets, deepening the risk-off mood. With liquidity contracting, ETFs bleeding, and leverage flushing out, the market has lost its three main sources of support at once.
Frequently asked questions
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Why did Bitcoin crash below $70,000?
Bitcoin fell 7% to $68,400 after losing the $70,000 support level, triggering forced liquidations of leveraged long positions. The drop coincided with a $14.2 billion 30-day decline in stablecoin supply and continued ETF outflows.
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How much did stablecoin supply fall?
Glassnode reported a $14.2 billion decline in major stablecoin supply over 30 days, the sharpest drop since the 2022 bear market. Total stablecoin supply fell below $280 billion, and CryptoQuant recorded a $6.6 billion USDT contraction over 60 days.
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Why does shrinking stablecoin supply matter for crypto prices?
Stablecoins act as crypto's cash reserves, letting traders move between exchanges and buy assets without leaving the blockchain ecosystem. When investors redeem stablecoins for dollars, that purchasing power exits the market, leaving fewer buyers to absorb selling pressure.
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How big were the crypto liquidations in the selloff?
Liquidations reached $1.64 billion over 24 hours, with long positions accounting for $1.46 billion. More than 175,000 traders lost their positions as Bitcoin's break below $70,000 triggered a cascade of forced closures.
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What are Bitcoin ETF flows showing during the selloff?
US spot Bitcoin ETFs lost $1.6 billion across 20 trading sessions, including $47.7 million in net outflows on November 12, a sixth consecutive day of withdrawals. Bitwise's BITB led with $26.4 million out, while Ethereum ETFs saw at least $8 million in outflows.
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